Institutional support for investment in domestic technologies: An analysis of the role of government in India

India has emerged as an increasingly important producer of technology-based products especially in information technology (IT) and biotechnology. This paper analyses the Indian government's institutional support for domestic technology. Three support foci are investigated, namely, (i) overall policy framework; (ii) availability of skilled manpower and (iii) financial instruments, such as tax incentives, research grants, concessional loans and venture capital. The paper analyses the outcomes of Indian policy using a standard indicator and reviews the current status of the three policy foci. Finally, appropriate policy actions are suggested. (C) 2004 Elsevier Inc. All rights reserved.